Legal Definitions - compensatio

Definition: Compensatio (kom-pen-say-shee-oh) is a term from Roman law that refers to a defendant's claim to reduce the plaintiff's demand by the amount that the plaintiff owes the defendant.

For example, if a plaintiff sues a defendant for $10,000, but the defendant can prove that the plaintiff owes them $5,000, the defendant can claim compensatio and reduce the plaintiff's demand to $5,000.

Compensatio is also known as setoff in common law. It allows a defendant to counterbalance the plaintiff's claim with their own independent claim arising from a separate transaction. This means that the defendant can reduce the amount they owe the plaintiff by the amount the plaintiff owes them.

For instance, if a plaintiff sues a defendant for $10,000 for breach of contract, but the defendant can prove that the plaintiff owes them $7,000 for services rendered, the defendant can claim setoff and reduce the amount they owe the plaintiff to $3,000.

Compensatio or setoff is a legal defense that can help defendants reduce their liability in a lawsuit. It is based on the principle of fairness and prevents plaintiffs from recovering more than they are entitled to.